Langton Capital – 2023-01-10 – Hostmore, GAW, WTB, energy support, Barclaycard data, Nando’s etc.:
Hostmore, GAW, WTB, energy support, Barclaycard data, Nando’s etc.:A DAY IN THE LIFE: We have pylons crossing the scrubland that we occasionally call a garden and they are the bane of my life. They crackle and fizz in the rain and, in hot weather, they sag and set the odd shrub on fire and, according to the tree fellers who pitch up every now and again to slash and burn their way across our land, they need 10m clearance in every direction in order to be safe. That’s 30 feet and change in old money and, since the lowest wire is only about 20 feet off the ground, less when the sun shines, we presumably should have a trench dug through our garden if we’re to walk across it safely. Either that or worm your way about on your belly but, even then, you’d risk having your backside lit up by a bolt from the blue and the Wayleave, the soggy little compensatory package that’s been in place since the 1930s, is more of an insult than anything else. Because it’s £19 odd per annum. Maybe that meant something when Ramsay MacDonald was on the throne but its scarce enough to buy a couple of pints and a bag of crisps these days. More on this tomorrow. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories (after the ellipses) are in the Premium Email. Reply to this email if you would like to upgrade. Prices for the Premium at time of writing are £345 for one subscription, £595 for multiple, both plus VAT. Or sign up for easy in, easy out monthly option HERE https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN BARCLAYCARD SPENDING DATA: Barclaycard has updated on (its view of) consumer spending in December saying that ‘festive gatherings and holiday bookings boost hospitality and travel in December, while utility bills continue to impact finances.’ Key points: The survey finds that ‘supermarket growth slowed as many Brits stocked up on festive food and drink earlier than usual to help spread the cost and avoid shortages.’ It says ‘spending on utilities climbed 40.6 per cent, as the drop in temperature led more households to increase their heating.’ The increased cost of gas and electricity (vs same month last year) will also have been a major factor. Barclaycard says ‘holiday bookings for the year ahead boosted travel, while Christmas parties and the FIFA World Cup lifted takings at pubs, bars & clubs…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. PUBS & RESTAURANTS: Energy cost help: The government has confirmed that energy support for businesses will be scaled back from April. The new scheme will see firms receive a discount on wholesale prices rather than costs being capped as is currently the case. Some energy-heavy industries, such as glass, steel and ceramics manufacturers, will get larger discounts. The government has described the existing scheme as ‘unsustainably expensive’… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. The economy: The ICAEW has commented on PwC’s predictions re the UK economy. PwC says that real wages are likely to fall to 2006 levels and house prices fall by 8%… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. The Resolution Foundation reports that the average household will be £2,100 worse off by the end of the next financial year. The cumulative 7% drop in income after housing costs will leave households worse off than they were before the pandemic until 2028… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Disposable income: Consumers’ spending money is being squeezed by landlords rising rents at the highest rate since comparable records began… Footfall: Springboard reports that footfall for the week ended 7 January was up 6.4% YoY but -18.6% compared to 2019 levels. High streets performed particularly strongly last week against 2022, while in both retail parks and shopping centres the improvement from last year worsened… Other news: Late Night Levy. UKHospitality CEO Kate Nicholls has responded to the launch of a Home Office consultation into the late night levy, saying ‘Now is not the time to extend the levy and the economic harm it inflicts on our late-night venues, taking £365,000 from the industry last year. Instead, the levy should be abolished in order to free up much-needed cash for businesses to invest in their business or, in many cases, simply stay afloat.’ Christmas trading: The MA reports that Christmas trading was a ‘mixed bag’ for pubs with the sector hit by the triple whammy of rail strikes, soaring energy prices and the cost-of-living crisis. A poll run by the MA found that 38% of pubs found the festive trading period to be better than expected, 43% said it was poorer and 18% said it was as expected. Aldi has come out as Britain’s cheapest supermarket chain with a typical shopping basket costing a third less than at Waitrose. The BRC and KPMG yesterday reported that retail sales rose by 6.9% in December, driven by higher prices rather than increases in volumes of product sold. Food and drink sales for December were up by 8%. COMPANY NEWS: Hostmore (TGI Fridays in the UK) has updated on trading for the year to end-December saying that LfL sales in H2 were down 14% on the 2019 level. It says ‘this result was achieved despite the impact of Her Majesty the Queen’s passing, national rail strikes, the Football World Cup, and the unusually cold weather during the period.’ The company also announces that Robert Cook is to step down as CEO with immediate effect… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. City AM reports that Nando’s has announced its first ever student discount as consumers see their disposable incomes squeezed. Last year, Nando’s revenue fell by nearly 50% in the year to February 2021 with CEO Rob Papps describing the lockdown-afflicted trading period as the most challenging year in its history… The MCA reports that McMullen’s had a strong festive trading period, with London sites hitting new sales records in December and festive trading across the estate up 13.5% vs 2019 LfLs… Curious Brewery has reached an agreement to add Wild Beer Co to its specialist portfolio of premium beers, with the acquisition set to double the size of the existing Curious operation… Mission Mars reports that Christmas LfL sales were up 26% YoY, with revenue of £16m for the 13-week period to 1 January 2023, up 69% YoY. The company’s Albert Schloss sites contributed £4.3m of revenue growth. Mission Mars’s nine-strong Rudy’s Pizza Napoletana brand saw revenue growth of 86% in the period… Former McDonald’s CEO Steve Easterbrook has been ordered to pay a $400,000 penalty (without admitting or denying claims) after being accused of misleading investors as to the reasons behind his 2019 sacking. . Soho House is to open its first northern unit in Manchester later this year. HOLIDAYS & LEISURE TRAVEL: In the wake of Sky’s story breaking the announcement, Whitbread yesterday confirmed that Dame Karen Jones is to be appointed as a Non-Executive Director of the Company with effect from 9 January 2023. The company says ‘Karen will also join the Remuneration Committee’ and it adds she ‘has a wealth of experience in the restaurant, food and hospitality sectors having founded Café Rouge and led the formation of Spirit Group as CEO.’ Marriott Bonvoy’s 2023 travel trends study shows that 80% of UK travellers are trying to ring-fence spending for holidays this year. Overall, 34% of those planning to go away say they will be taking more holidays than in 2022. As many as 42% plan to travel at different times of the year, while 35% will make do with the clothes they wore on holiday last year. IATA reports that air traffic in November was back at 75.3% of its 2019 levels. Global air traffic in November was up by 41.3% on the same month in 2021. OTHER LEISURE: Games Workshop has reported H1 numbers saying that revenues rose in the period from £191.5m to £212.3m with PBT down from £88.2m to £83.6m. CEO Kevin Rountree says ‘”Games Workshop and the Warhammer hobby are in great shape,’ he adds this was ‘another rewarding and successful period for the global team with core sales for the six months of over £200 million for the first time…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Disney boss Bob Iger has called on employees who are working from home to come into the office for four days a week from the start of March. FINANCE & MARKETS: The CBI’s Education & Skills Survey 2022 has reported that fewer firms are investing in training despite the widening skills gap… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Bank of England economist Huw Pill has said that high rates of UK inflation could last for longer than expected. He says there is a risk of ‘self-sustaining momentum’ pushing prices on, even when oil and gas prices ease back… Sterling mixed at $1.2171 and €1.133. Oil down at $79.36. UK 10yr gilt yield up 6bps at 3.53%. World markets mixed yesterday & London set to open around 44pts lower as at 6.30am. London’s FTSE100 yesterday hit 5yr highs. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. |
|
